Policies in the sphere of corporate social responsibility from “Samruk Kazyna” and others.

The concept of sustainable development and corporate social responsibility gained increased awareness following a speech by the President of Kazakhstan at the National Forum for Socially Responsible Business in Zheskasgan (2008):

“The formation of socially responsible government and business is one of the basic conditions of sustainable development. Corporate social responsibility today is understood not only as charity, but also as efficient operations which increase business reputation and company capital. It is a voluntary contribution of business to community development in the social, economic, and environmental spheres; it is a business’s conscious investment in the future.”

In addition, Kazakhstan’s impending entry into the World Trade Organization and deeper Eurasian integration will significantly increase pressure on Kazakhstani businesses to improve the effectiveness of their operations by adopting the principles of social responsibility.

In addition, multiple research studies [1] have demonstrated that there is low level of awareness among businesses in Kazakhstan about CSR principles, as well as a lack of common understanding of the concept of CSR among stakeholder groups – government, business, and the civil sector (Image 1/2).

[1] “Corporate Social Responsibility in Kazakhstan: The Current Situation, Challenges, and Opportunities for Development”, Research Center SANGE (203); “Status and Opportunities for the Development of CSR and Social Investment in Kazakhstan”, UNDP (2008).

Filling this awareness gap is a prerequisite to effective implementation of CSR instruments into practice, which will in turn increase the competitiveness of Kazakhstani business and promote the country’s sustainable development.

In direct response to these needs and following engagement with multiple stakeholder groups, KEGOC (a systems operator for the national electrical grid) made the decision to develop a practical handbook on CSR for companies in the electricity industry. In this way, the company is making its own voluntary contribution to promoting the values of corporate social responsibility and sustainable development among KEGOC stakeholders.

Project Goal:

Facilitate the development and promotion of the principles of corporate social responsibility (CSR) and sustainable development among companies in the electricity industry in Kazakhstan.

Project Objectives:

Increase awareness about the concept of CSR among companies in the electricity industry in Kazakhstan.

Disseminate best practices in the sphere of CSR and sustainable development.

Improve the reputation and long-term perception among target groups of the donor company as a socially responsible business and a center of leadership within the industry.

Short-term Project Results:

1500 copies published in Kazakh and Russian languages of the first industry-specific business handbook on CSR and sustainable development in Kazakhstan.

Increased awareness among stakeholders regarding the effective use of CSR instruments in daily operations and the development of corporate governance.

Compilation and analysis of knowledge on planning and implementing CSR strategies in companies.

Support for best practices and success stories on CSR and sustainable development from publication partners.

Partnership across industries established among Kazakhstani companies through a competition for best CSR practices.

Competition committee of independent experts established.

Positive partnership experience between KEGOC and non-governmental organizations (Eurasia Foundation of Central Asia and others) through social project implementation.

Anticipated Long-term Results:

KEGOC confirms that this socially-oriented project will promote the preparation of Kazakhstani specialists and the effective adoption of CSR standards into corporate governance, increasing the competitiveness and investment appeal of the electricity sector of the economy and Kazakhstan as a whole.

Improved reputation and long-term perception among target groups of the donor company as a socially responsible business and a center of leadership within the industry.

Business handbook serves as a guide for stakeholder companies to develop CSR strategies.